1. Field of the Invention
The present disclosure relates generally to financial transactions and more particularly to peer-to-peer payment between mobile devices using near field communication (NFC) in a network environment.
2. Related Art
Arguably, mobile phones are currently the most widespread mobile computing device in the world. They have become ubiquitous companions in our life, enabling communication nearly anytime and anywhere to facilitate information access to mobile services and the Internet. In addition, mobile phones have become multimedia computing platforms with integral digital cameras for taking pictures and video, playing music, recording conversations, and for organizing our lives.
Using physical objects as entry points to data and services can ease mobile communication and information access. Augmentation of the environment enables physical mobile interactions, which involve a user, a mobile device, and a physical object or another mobile device. The object is augmented with some kind of technology and subsequently stores information. The information is typically associated with a mobile service that might be triggered through an interaction with the physical object. Physical mobile interactions make it possible to bridge the gap between the physical and virtual world. In order to support communication between the mobile device and the augmented object, communication technologies are required.
Different short-range communication technologies have been integrated into mobile devices in recent years. The process began with infrared transceivers for synchronizing applications with a desktop computer. Bluetooth technology evolved and overcame some of the problems experienced with infrared. However, when attempting to connect two devices with Bluetooth, the setup is often lengthy and is very often not user-friendly.
Radio Frequency Identification (RFID) is another technology that has been easily integrated into mobile devices, such as cellular telephones, personal digital assistants (PDAs), or computers. RFID works with active communication devices (transceivers or read-write devices) and passive non-powered tags (transponders). The tags are relatively small, inexpensive, and can store information, making them suitable for augmenting physical objects unobtrusively. The transponder is attached to objects that are to be identified and contains information, such as product price or vehicle identification, for example. The transceiver emits an electromagnetic signal that activates the tag and enables the transceiver to read the tag's information and/or to alter it, assuming the tag is re-writeable. Usually, the transceiver is in communication with a computer or similar device to which the information is passed.
Near Field Communication, herein referred to as “NFC,” is the most recently explored technology for object augmentation to bring mobile devices and physical objects together to enable a user to interact with the augmented objects for information and/or data communication.
In this regard, NFC is a short range, high frequency, wireless communication technology that enables the exchange of data between devices over a relatively short distance, viz., 0-20 cm. NFC is based on RFID technology and uses many of the same working principles. The technology is standardized in ISO/IEC 18092 (International Organization for Standardization/International Electrotechnical Commission), ECMA-340 (European association for standardizing information and communication systems), and ETSI 102.190 (European Telecommunications Standards Institute). All of these standards define the NFC Interface and Protocol-1 (NFCIP-1), see FIG. 1, which specify the modulation schemes, coding, transfer speeds and frame format of the RF interface of NFC devices, as well as initialization schemes and conditions required for data collision-control during initialization for both passive and active NFC modes.
NFC is also standardized in ISO/IEC 21481 and ECMA 352, which corresponds to NFC Interface and Protocal-2 (NFCIP-2). The NFCIP-2 standard specifies the mechanism to detect and select one communication mode out of three possible communication modes typical of NFC devices (Peer-to-Peer, Read/Write Card, and Card Emulation), as further shown in FIG. 1.
NFC is compatible with ISO/IEC 14443 type A and type B (proximity cards operating at a maximum distance of 20 cm), ISO/IEC 15693 (vicinity cards operating at a distance from 10 cm to 2 m) and to the FeliCa contactless smart card system. Accordingly, an NFC device can communicate with both existing ISO 14443 smartcards and readers, as well as with other NFC devices, and is compatible with existing contactless infrastructure already in use for, among other things, public transportation, payment, and promotion/advertising.
As discussed above and illustrated in FIG. 1, a key feature of NFC devices is that the NFC chip that is integrated into the NFC device can read out an RFID tag's information, emulate a smart card so that a reader can access its data, or communicate directly with another NFC device in a peer-to-peer fashion when the two NFC enabled devices are brought into direct contact or in very close proximity to each other. In other words, NFC technology enables communication between devices that both have active power and computing capabilities, as well as communication between powered devices and passive tags.
For operating in Reader Mode, it is sufficient to hold the NFC device near a compatible tag that stores some information (typically 1 Kb-4 kb). This information could be, for example, a bookmark of a company website in the company advertising poster, a timetable of a bus near a bus stop, some tourist information beside works of art near a museum, or the like. With peer-to-peer communication mode, it is possible, for example, to synchronize calendars between two NFC PDAs, or to set up networks (Bluetooth, Wi-Fi, or the like) simply by holding the two NFC devices in close proximity to each other. In card emulation mode, the NFC device can host virtual payment cards and enable the user to make payments. For example, it is possible to buy a travel ticket while providing management of associated customer loyalty and bonus programs. In card emulation mode, it is also possible to control access, i.e., the NFC device acts as a key.
Prior to utilizing many known NFC devices for the first time, some sort of pre-operationally process is typically required. In this regard, the present disclosure describes an activation and authorization process that may provide security features, as well as check NFC device compatibility and pre-configure the device accordingly.
One example of an NFC technology application is financial transactions. A consumer taps the NFC device on a reader to effect a monetary transfer. Typically, a retailer enters the total amount due, and the consumer taps the NFC device on the reader, which causes payment details to be sent to the consumer's financial institution. Very shortly after, the consumer and retailer receive payment confirmation. Such a method provides advantages such as eliminating the need to carry cash and enabling a faster financial transaction. PayPass is an example of this type of method. However, this method is limited in that the transfer is with a retailer at a POS terminal or reader. Further, the consumer NFC device simply authorizes a money transfer based on the POS terminal.